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Good to Great - Journal
- 1. Good To Great ByJim Collins Introduction This book has inspired management professionals, executives, entrepreneurs, managers and individuals selling millions of copies. It talks about companies and its people who in their journey has demonstrated a fanatic discipline exhibiting great values and qualities in achieving successes and leaps. It also talks about comparison companies where people by their choice and qualities have failed to succeed on the same platform. In giving us the tale of comparisons, the book also provides tools and action plans for individuals who want to thrive and achieve greatness and become leaders in what they do. About Jim Collins Source: http://www.jimcollins.com Jim Collins is a student and teacher of enduring great companies—how they grow, how they attain superior performance, and how good companies can become great companies. Having invested nearly a quarter of a century of research into the topic, Jim has authored or coauthored six books that have sold in total more than ten million copies worldwide. They include the classic Built to Last, a fixture on the Businessweek bestseller list for more than six years; the international bestseller Good to Great, translated into 35 languages; and How the Mighty Fall, a New York Times bestseller that examines how great companies can self-destruct. His most recent book is Great by Choice: Uncertainty, Chaos, and Luck—Why Some Thrive Despite Them All, coauthored with Morten Hansen. Target Audience Although the books is written in context to business and management professionals, it is a definitive read for any professional in transforming them from good to great regardless of their profession or culture.
- 2. Book Summary In thissection we provide the key summary of content in this book, chapter by chapter. CHAPTER 1: GOOD IS THE ENEMY OF GREAT Jim talks about questions that seeded the basis for this book. Is the disease of “just being good” incurable? Can a good company become great company? Chapter 1 provides the data and statistics that Jim and his research team had to collect and select to arrive answers to how few companies were able to make an amazing transformation and exceed market expectations. The analysis took companies from different industry sectors such as retail, pharmacy, manufacturing, electronics etc. The transformation exhibited by some good to great companies fueled the curiosity and Jim and his research team were able to identify clues inside their “black box”. CHAPTER 2: LEVEL 5 LEADERSHIP An organizations’ core asset is its people. And the people in the leadership and management make the key decisions that drives the results in the organization. The execs of these good to great companies had Level 5 leadership during their transformation. Examples of how leaders of Kimberly-Clark, Gillette and Fannie Mae showed unique traits of personalities and diligence gives an idea of how their astonishing will in keeping ambitious but remarkably humble led great transformations and results for the organization.
- 3. CHAPTER 3: FIRSTWHO…THEN WHAT The idea of First Who..Then What is about finding the right people on the bus (organization). It’s about who you pay and not how you pay them that matters. The good to great companies are in fact tough places to work and people who don’t have the traits to adapt to a disciplined culture that’s rigorous cannot survive there. Having the wrong people hang in the bus is going to demotivate the right people to get off the bus. Jim touches on the philosophical aspect of works and relationships, “if we don’t spend the vast majority of our time with people we love and respect, we cannot possibly have a great life”.
- 4. CHAPTER 4: CONFRONTTHE BRUTAL FACTS (YET NEVER LOSE FAITH) One of the two distinctive forms of discipline the good to great companies displayed is that they infused their process with brutal facts of reality fostering a climate where truth is heard from all levels. Jim details on how it was done in these transformation companies also with a reference to Stockdale Paradox which is a personality development lesson to all individuals. CHAPTER 5: THE HEDGEHOG CONCEPT In this interesting chapter, Jim talks about how the essence of profound insight is simplicity. Tracing through Walgreen’s most simple hedgehog concept of “high profit per customer visit” and how the breakthrough strategy though extremely simple was
- 5. transformational by strategicprogram and fanatical consistency that led to great results. Also understanding that it takes years for get a hedgehog concept, the but the good to great companies produced superior economic returns by “sticking to it” with consistency. CHAPTER 6: A CULTURE OF DISCIPLINE Building a disciplined culture primarily consists of fostering a culture around the idea of freedom and responsibility, fill it with self-disciplined people and adhere in great consistency with the three circles of their hedgehog concept. A great company is much more likely to die of indigestion from too much opportunity than starvation from too little. A good comparison of Nucor and Bethlehem Steel illustrates who choosing the right opportunities with fanatical adherence to their hedgehog concept produced sustained results.
- 6. CHAPTER 7: TECHNOLOGYACCELERATORS The good to great companies believe that technology is not the root cause of greatness but just an accelerator of the momentum. The good to great do not ignore the advancements in technology, but they respond with creativity driven by compulsion to turn unrealized potential into astonishing results. The comparison of Walgreens and drugstore.com show how each of their perception of technology and choices let to the results. CHAPTER 8: THE FLYWHEEL AND THE DOOM LOOP Another interesting chapter talks about the inside process of how good to great companies persevered by not reaching their greatness overnight, but in action by action, step by step all that adds to sustained and spectacular results. The transformation that happened wasn’t dramatic, though revolutionary when seen from the outside, on the inside it’s an organic process with the discipline to follow the build- up breakthrough flywheel model. The comparison companies tried to jump into action immediately without buildup and lack consistency.
- 7. CHAPTER 9: FROMGOOD TO GREAT TO BUILT TO LAST In this final chapter, Jim talks building the endurance and sustainability of companies that has made the transformation from good to great. Companies must create and endure their core values and purpose regardless of what it is, and only adapt their business strategies and operating practices according to the changing world. In addition to the above chapters Jim also provides some resourceful FAQ and appendices and that really worth the read. Interesting Artifacts • Stockdale Paradox • “Stop-doing” lists are more important than “to-do” lists • Are you a fox or a hedgehog? • Flywheel and Doom loop comparison • Nucor’s culture • Why greatness?
- 8. Lessons for Businesses •Build a culture of discipline that’s rigorous but not ruthless • Not just visionary leaders, but leaders with Level 5 leadership skills • Right people on the bus • Hedgehog concept • Entrust and faith in the Flywheel model • Preserve the core, Stimulate progress • Perception of technology • Hedgehog concept with diverse business portfolio rarely produces results Lessons for Individuals • Being good is not enough • Hedgehog concept • Flywheel model – Astonishing results come from step by step actions and endurance • Have BHAG • Building great leadership skills and commitment Get the book Note: All images and referenced content are copyrights of the respective owners. It’s only used for reference and education.